If you want to succeed at Bitcoin binary options trading, it would
be best to go to your Bitcoin
binary options broker with a trading plan already laid out. With a clear
strategy in mind, you’d be able to lay out clear goals, respond quickly to most
trading situations, and to ensure that you come out on top. The trouble is that
most traders have only a vague idea on how to create a trading plan. Here’s a
simple guide to help you out.
Before You Begin
When starting out with a trading plan, you should first define your
goals. It’s not enough to make money. Have a defined amount of money you want
to make. Maybe it’s enough for a car or a house, but having a set number can
make things easier. Furthermore, you’ll want to determine how you want to
trade. Do you want to be aggressive or conservative? This can determine which
options you will be trading in and how aggressive you will be buying and
selling options.
The Components
There are three parts of a trading plan: the entry rules, money
management, and the exit rules. The entry rules dictate when you want to start
trading options. Are you aiming for a particular price? How much would be your
initial budget and how many options do you want to buy? Money management comes
in when you’re in the middle of trading. This determines how much you allocate
to buys and when you think it would be best to sell options. Your money
management rules will keep you in the running. Finally, exit rules determine
when you stop trading. Have a target profit or loss number to say that you’re
done for this round of trading.
